Jakarta, hitclubapk3 Indonesia
—
World Bank
predict
economy
Indonesia will grow 5 percent in 2025 and 2026. Then, the rate will increase to 5.2 percent in 2027.
Lead Country Economist for Indonesia and Timor Leste World Bank David Knight said economic growth would be supported by household consumption and investment growth.
“The investment growth in our forecast is due to three factors.
First,
increased investment through Danantara.
Second,
further easing of monetary policy.
Third,
implementation of reforms that will support increased foreign investment,” said Knight at the ‘The Launch of World Bank Indonesia Economic Prospects December 2025 Edition’ event at the Energy Building Jakarta, Tuesday (16/12).
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Meanwhile, the inflation rate is estimated to be at 2.6 percent from 2026 to 2027. Inflation is expected to remain within the central bank’s target range, although food price volatility remains a challenge.
“Inflation has increased from 1.6 percent to 2.7 percent in recent years. However, most of this increase was caused by volatile components outside the control of monetary policy,” he said.
The World Bank’s prediction is an increase compared to last June’s projection, where the Indonesian economy was estimated to grow only 4.7 percent in 2025, 4.8 percent in 2026 and 5 percent in 2027.
In the June 2025 edition of the Global Economic Prospects report, the World Bank noted that this slowdown occurred amidst worsening global economic conditions, which were marked by increasing trade barriers, policy uncertainty, and falling investment flows.
“Growth in many developing countries, including Indonesia, is expected to slow due to weakening investment and pressure from an increasingly deteriorating external environment,” wrote the World Bank in the report, quoted on Wednesday (11/6).
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(fby/sfr)
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